Claymore Securities, known for its narrowly focused exchange-traded funds, has just launched the Claymore/Delta Global Shipping Index ETF (SEA). The ETF tracks companies from the global maritime shipping industry.
Index provider Delta Global selects companies that derive a significant portion (in excess of 80 percent) of their revenues from the seaborne transport of dry bulk goods and the leasing and/or operating of tanker ships, container ships, specialty chemical ships and vessels that transport liquid natural gas or dry bulk goods.
This is the first Claymore ETF that carries a dividend-weighted “engine under the hood.” A modified dividend weighting mechanism is applied to constitute the final index, with higher-yielding securities based on their indicated dividend yield being more highly weighted according to a proprietary methodology. No single security weight will exceed 4 percent of the index at the time of each rebalance. The index is reconstituted annually, with rebalancing occurring quarterly. The expense ratio is set at 0.65 percent.